CONSTRUCTION CONTRACT

(DESIGN AND PRECONSTRUCTION WORKS)

KNOW ALL MEN BY THESE PRESENTS:

This Construction Works Contract, made and Executed this

__________________________ day of ______________________ 2022 _________, _________, by and between.

THE CLIENT, DAWN THORNBURG with official

address at 3832 West Five Mile Peak Drive San Tan
Valley, AZ 85142, hereinafter referred to as the
“OWNER”

-an d-

DOLSON CONSTRUCTION, a corporation duly

organized and existing under and by virtue of the laws
of the United States, with principal office address at
44435 W Desert Plant Trail, Maricopa AZ 85139,
represented herein by, ROBERT DOLSON hereinafter
referred to as the “CONTRACTOR”;

WI TN ES S ET H : THAT -

WHEREAS, through a DESIGN AND PRECONSTRUCTION WORKS, the OWNER will

cause the construction of THORNBURG RESIDENCE herein referred to as the “PROJECT”.

WHEREAS, the CONTRACTOR has represented and warranted itself as a competent,

capable and duly licensed contractor (Contractor's State License#: 319026), and is willing
and agreeable to furnish, install and complete the Works of the PROJECT in accordance with
and as indicated in the working drawings, plans and specifications prepared for the Owner
by DOLSON CONSTRUCTION thru a fixed contract agreement, which drawings, plans and
specifications are attached hereto and made integral parts hereof;

WHEREAS, the OWNER on the representations made by the CONTRACTOR, agreed to

award the contract and engage the services of the CONTRACTOR subject to the terms and
conditions hereinafter set forth and contained;

NOW, THEREFORE, for and in consideration of the foregoing premises and the mutual
covenant hereinafter stipulated, the parties hereto have agreed as follows:

Page 1 of 18
 ARTICLE I
SCOPE OF WORKS

1.1 The COST PROPOSAL dated June 1, 2011 attached herein describes all the work that
is included to be completed under this contract and the total cost of the said work.

1.2 The Contractor agrees to perform services and supply materials for the Client as
described set forth in more detail in the “Scope of Work", "Approved Drawings",
"Change Orders", which is/are hereby incorporated into this Contract.

1.3 The CONTRACTOR shall not change, modify or alter the final plans and specifications
of the Project approved by the OWNER without the prior written consent and
permission of the OWNER. Tolerance by the OWNER of such changes or modifications
shall not constitute or be deemed as approval of the OWNER, or waiver of this
provision.

1.4 The CONTRACTOR shall employ sufficient number of competent workmen at all times
maintain an adequate supply of tools, materials and equipment to carry out the
various phases of the work in accordance with the agreed program, subject to any
modification mutually agreed upon in writing by both parties.

1.5 The CONTRACTOR diligently supervise the PROJECT until its completion and shall
assign full-time skilled workers to ensure proper work and schedule implementation.

1.6 The OWNER may order changes in the scope of work consisting of additions,
deletions, or modifications, as well as the options to purchase and supply materials
therefore, in which case the Contract Price and, if warranted, the Construction Period
shall be accordingly adjusted upon mutual agreement of the parties. All such changes,
however, must be authorized in writing by the Owner, and shall be considered
incorporated by reference into this Contract.

ARTICLE 2
CONTRACT PRICE

2.1 For and in consideration of the faithful and satisfactory accomplishment of the Works
and all the obligations specified in this Contract, the OWNER agrees to pay the
CONTRACTOR a fixed Contract Price in the amount of

US DOLLARS: SEVEN HUNDRED TWENTY-SEVEN THOUSAND

SEVEN HUNDRED TWENTY-ONE & 02/100 ($ 727,721.02) US
Currency

Inclusive of Tax (hereinafter referred to as the Contract Price) to be paid in the

manner hereinafter set forth.

2.2 This Contract Price shall be inclusive of the expanded/creditable withholding tax,
Pinal County Adjusted Tax Rate, contractor’s tax, if any and all other miscellaneous
fees, charges or taxes, whether national or local. In this regard, the OWNER shall
deduct all taxes due from the CONTRACTOR under the Contract as withholding tax
agent and remit the same to the proper Government Agency.

2.3 Survey, Permits, Taxes, and Regulations. The Client shall provide and pay for an
adequate survey and plot plan of the property if required by Contractor. The
Contractor shall obtain, on behalf of the Client, all permits and approvals necessary
to commence and complete construction. The Client shall reimburse the Contractor
for any fees, permit fees, special taxes, and/or assessments assumed by the
Contractor for working in the Client’s municipality or jurisdiction.

Page 2 of 18
2.3 The labor cost component of the Contract price is based on the minimum wage set for
this STATE. In the event of an official increase in minimum wage or compulsory
allowance imposition during the construction period, the contract price shall be
adjusted accordingly.

ARTICLE 3
MANNER OF PAYMENT

3.1 DOWNPAYMENT. Due upon the Client’s execution of this Contract. Contract is not
ratified until the deposit is received. The OWNER shall pay the CONTRACTOR a down
payment in the amount of:

$_______________________________

3.2 PROGRESS PAYMENTS. Progress billings will be issued in accordance with Section 4
of this Contract for (i) Completed Work and (ii) deposits required of Contractor for
materials or services ordered and will be detailed via payment terms and schedule
provided through BuilderTrend. Total Progress Payments is amounting to:

$_______________________________

**Payment schedule will be listed in BuilderTrend once the project

commences

3.3 FINAL PAYMENT. Final payment shall not be due, and released by Client, until the
Contractor submits to the Client: a) executed unconditional releases and waivers of
liens for which payments have been made; b) conditional releases for payments not
yet received, data establishing payment or satisfaction of all obligations arising out of
this Contract; and c) the following requirements have been met:

i. Contractor has completed the entire Scope of Work and any Change
Orders;
ii. All punchlist items have been completed to the Client's satisfaction;
iii. All required inspections have been passed and completed;
iv. the Certificate of Occupancy (if required) has been obtained;
v. Contractor has delivered all materials and manufacturer warranties;
vi. Contractor has delivered a final set of as-built plans, OEM manuals, and
any other closeout documents;
vii. Client agrees in writing that Full Completion has been met.

3.3 The Compensation is based solely on the Scope of Work and any subsequent Change
Orders.

3.4 Contractor shall provide a payment schedule congruant with the project start and end
dates (Project Duration) set forth in this contract and reasonable with the time and
work to be completed. The payment schedule is typically posted during the first week
of on-site work, Client has no obligation to make further payments in the absence of
a payment schedule being posted.

3.5 Client shall remit payment to the Contractor within 3 business day of the scheduled
date as set forth in the payment schedule

3.6 All payments must be made when due, time being of the essence. Late payments shall
be subject to interest at a rate of .75% a month (9% per annum). Payments will be
halted if production is delayed for any reason and will then resume the week that
production resumes.

Page 3 of 18
3.7 Client’s failure to make timely payments, when due, constitutes a material breach
under this Contract which permits Contractor, without waiving any other rights or
remedies under this Contract or at law, to suspend Work until all payments due have
been received less any amounts reasonably withheld by the Client for items not yet
delivered or complete.

3.8 The Parties agree to waive any requirements for ORS 701.420 (regarding establishing
interest-bearing escrow accounts on contracts over $500,000) as between
themselves that would otherwise apply.

3.9 Billing for materials shall be limited to those actually installed in place, to the
exclusion of off-site fabrication works and materials and of materials delivered on site
but not yet installed.

3.10 Billings shall be deemed correct and accepted unless the OWNER, after verification,
serves to the CONTRACTOR a written objection or exception to the billing within ten
(10) calendar days from the date of actual receipt thereof and sets out the grounds
therefore.

ARTICLE 4
CONTRACT DOCUMENTS

4.1 The following, collectively referred to as the Contract Documents, shall be considered
as integral parts of this Contract, to wit:

4.1 This Construction Contract

4.1.1 Approved Plan and Specifications

4.1.2 Construction Schedule (PERT-CPM/ S-CURVE)

4.1.3 CONTRACTOR’S Final Cost Proposal dated June 1, 2011

4.1.4 CONTRACTOR’S Bill of Quantities

4.1.5 Bonds and Insurances

4.1.6 Comprehensive General Liability and Employee’s Accident Insurance

4.1.7 Public Liability Insurance Policy

4.2 The foregoing Contract Documents shall be interpreted and construed together as to
give harmonious effect between them and are arranged in the order of descending
preference. In case of ambiguities or discrepancies, however, the same shall be
explained, interpreted or resolved by the OWNER and shall thereupon issue the
appropriate instructions to the CONTRACTOR.

4.3 The parties hereto may execute such other documents relating to the Works after the
execution of this Contract and such documents, when signed by the authorized
representatives of the parties, shall also form part of the Contract Documents.

4.4 The Contract Documents contain the entire agreement and understanding between
the OWNER and CONTRACTOR as to the subject matter hereof, and the same
supersedes all prior agreement, commitments, representations, writing, and
discussions between them. All other documents relating to the subject matter.
Executed by the parties prior to this Construction Contract but not forming part of
the Contract Documents above enumerate are deemed waived and/or abandoned.

Page 4 of 18
 ARTICLE 5
CONTRACT PERIOD, EXTENSION OF TIME, DAMAGES

5.1 CONTRACT PERIOD. The CONTRACTOR shall complete the Works required under
this Contract within __________ calendar months or ______ calendar days. Day one will
commence seven (7) calendar days after receipt of Building Permit

5.2 PROJECT TIMELINE

Commencement Date :
Major Completion Date :
Full Completion Date :

5.3 This Contract will commence as of the date set forth above and remain in full force
and effect until Full Completion, terminated or otherwise brought to conclusion
through the Dispute Resolution plan set forth in the General Provisions.

5.4 CONTRACTOR DAMAGE. It is understood that time is an essential consideration of

this Contract and that, in the event that CONTRACTOR fails to complete and deliver
the Works within the Contractor Period unless the delay or non-completion is due to
justifiable reasons allowed under this Contract, the CONTRACTOR agrees to pay the
OWNER liquidated damages equivalent to one tenth of one percent (1/10 of 1%) of
the Contract Price for each and every calendar day of delay (Saturdays, Sundays and
legal non-working holidays) until Works are finally completed and delivered that the
total liquidated damages shall not exceed ten percent (10%) of the total Contract
Price. The OWNER may deduct such liquidated damages from any amount due or to
become due to the CONTRACTOR under this Contract.

The foregoing notwithstanding, no liquidated damages shall be assessed against the

CONTRACTOR if the Works are NINETY-EIGHT PERCENT (98%) complete provided
that the OWNER can already enter and occupy the premises and the remaining Works
to be done do not impair the integrity of the entire Works.

5.3 EXTENSION OF TIME (EOT). The Contract period may be extended by the OWNER
in favor of the CONTRACTOR in case of the following justifiable causes or delay of the
project.

5.3.1 Force majeure or events attribute to natural or human causes or phenomena

beyond the control of the CONTRACTOR which make it impossible for the
CONTRACTOR to carry out in while or in part of its obligations under this
CONTRACT;

5.3.2 Substantial alteration in the Work approved and ordered by the OWNER;

5.3.3 Site in accessibility not attributable to the acts or omissions, fault or

negligence of the CONTRACTOR;

5.3.4 Any acts or omissions of the OWNER, including the issuance of a hold-order
or suspension of work;

5.3.5 Any other event not attributable to the acts or omissions involving fault or
negligence of the CONTRACTOR which make it impossible for the
CONTRACTOR to carry out its obligations under this Contract.

5.3.6 Any delay in the payment of billing beyond the payment schedules specified
in Article 4, in which case, the CONTRACTOR shall be entitled to a time
extension equivalent to such number of days as there are delays.

Page 5 of 18
5.4 In the event that the CONTRACTOR encounters any of the justifiable causes or reasons
for delay as allowed herein, the CONTRACTOR shall submit to the OWNER within ten
(10) calendar days after encountering such cause or causes a written request for an
extension of the Contract Period, indicating therein the specific reason for the delay
and the extensions period requested. This extension, being premised on justifiable
reason/s, shall not be unjustifiably withheld.

5.5 The foregoing provision notwithstanding, no extension of the Contract Period shall
be granted in the following instances;

5.5.1 Ordinary unfavorable weather conditions or monsoon rains;

5.5.2 Non-availability of laborers, supervisors, equipment or materials, including

power, water and other utilities, that are supposed to be furnished or supplied
by the CONTRACTOR;

5.5.3 Labor problems, including strikes, slowdowns, pickets, or lock-outs, involving

the CONTRACTORS employees, workers or personnel or those of its
subcontractor, agent or supplier;

5.5.4 Disputes of the CONTRACTORS with its materials men and suppliers.

5.6 The OWNER thru the Owner’s representative shall have the exclusive option of
granting a request for extension and determining the extensions period to be allowed
in favor of the CONTRACTOR to compensate for the lost time, which option shall not
be unreasonable withheld or delayed.

5.7 No extension of the Contract Period, even if granted or allowed by the OWNER, shall
be valid unless and until the CONTRACTOR causes or secures the corresponding
extensions of the bonds and insurances required under this Contract in favor of the
OWNER.

5.8 SLIPPAGE OR CONTRACTOR DELAYS

a. Client Caused Delays. A Client caused delay is when the Client makes a
decision or is in control of a job item that halts the Contractors progress. This
can include, but is not limited to inaccuracy/incompatibility in Client
provided. If a Client caused delay results in a delay of the completion dates of
the project then the Major and/or Full Completion Dates will be amended
accordingly (in writing and signed by Client and Contractor) based on the
delay at no cost to the Contractor

b. A contractor caused delay is when the Contractor makes a decision or is in

control of a job item that halts progress. This can include, but is not limited to
inaccuracy/incompatibility in Contractor provided material. For Client
caused delays, Client agrees to pay Contractor liquidated damages; to be
negotiated at the time of the delay if needed at all. "Occurance" shall mean a
separate event resulting in a Client caused delay. In the event that Client
provides Contractor with five (5) days notice of a Client caused delay to
Contractor, there shall be no liquidated damages paid to Contractor.

5.9 If at any time during the Contract Period, the CONTRACTOR incurs a slippage of
TWENTY-FIVE (25%) in the Construction Schedule, the OWNER may require the
CONTRACTOR to submit within seven (7) calendar days and demand a confirmed
catch-up schedule, including the list of resources required therefore to remedy the
delays/slippage incurred over a period of thirty (30) calendar days. The purpose of
this Section is merely to enable the CONTRACTOR to complete the Works within the
original Contract Period and not to grant an extension therefore. Should the
CONTRACTOR, despite the catch-up schedule, fail to remedy/overcome the slippage
within the catch-up period, the OWNER may take any or all the following course of
action.

Page 6 of 18
5.9.1 Terminate this Contract pursuant to Article 10 hereof.

5.9.2 The exercise by the OWNER of either of the above options is without prejudice to
other legal remedies allowed under this Contract and existing laws, including the
right to demand for liquidated damages.

ARTICLE 6
CHANGES

6.1 CHANGE ORDERS. Without prejudice to the provisions of the Contract, the OWNER
may from time to time, without invalidating the Contract, issue in writing Change
Orders regarding Changes in the WORKS or in the Plans and Specifications of the
Project. In which case the provisions of the Contract and Contract documents shall
apply to all such Changes, with the same effect as if they were embodied in the original
Contract or Plans and Specifications, except that the Completion Period may be
extended by the OWNER if said Changes will affect the Critical Path Schedule of the
Project. Prior to the issuance of such Change Orders, the OWNER or OWNER’s
representative may issue Work Authorization Orders when required under the
circumstances.

6.2 The parties may utilize Potential Change Orders prepared by the Contractor and
signed by the Client and Contractor to expedite and facilitate performance of a change
in the Scope of Work within the general scope of the Contract, consisting of additions,
deletions, or other revisions, prior to incorporation into a Change Order. The
following requirements apply to Potential Change Orders:

a. Client-Initiated Change Order Request. From time to time during the course of
the work, Client may request that the Contractor prepare a Potential Change
Order for changes in the Work. In such cases, Contractor shall provide Client
and Consultant with a written Potential Change Order within seven (7) days of
Client's request (and in any case prior to Contractor performing any such work
or incurring any costs with respect to such changed work).

b. Contractor further has an ongoing obligation to monitor the Scope of Work and
conditions of the project, and anticipate potential changes in the Scope of Work.
In such case, and to the extent Contractor reasonably believes a change in the
Work is warranted, Contractor shall prepare a written Potential Change Order
within seven (7) days of discovering the conditions giving rise to the change
(and in any case prior to Contractor performing any such work or incurring any
costs with respect to such changed work).

c. Whether initiated by Client or initiated by Contractor, Contractor’s Potential

Change Order shall include detailed SOW changes, pricing or credits, and
include proposed additions or reductions to the Contract Time, in sufficient
detail to allow Client (and any consultants) to fully evaluate the potential costs
and potential impact on the project and schedule.

d. In all cases, fully executed Potential Change Orders must be incorporated into a
fully executed Change Order to be included in Contractor's application for
payment. Unless otherwise approved by Client in the Change Order, fully
executed Change Orders shall be billed according to the progress of the
specified work and will not be paid in advance.

6.3 PRICING OF CHANGES. Every Change Order may include multiple changes covered
by the same change order fee. Time and materials rates are as follows:

 All labor, field and administrative: $95.00 per carpentry man hour
 All material costs

Page 7 of 18
  All service costs. In house Plumbing rate of $125.00 an hour, In house
Electrician rate of $125.00 an hour
 All applicable engineering and jurisdictional fee’s that apply

ARTICLE 7
INSURANCE

7.1 Contractor will maintain typical general liability, vehicle, and workers compensation
insurance to perform work at the project address. Standard coverage includes
insurance (including ongoing and completed operations coverage) in amounts of not
less than $1,000,000 occurrence / $2,000,000 aggregate. The Client recognizes the
need that for their own protection of their proprty they need to notify their insurance
carrier of the work to be completed and to increase all policies to include the size and
value of the work that is to be completed in amounts required by Oregon law.
Contractor shall maintain its general liability coverages through the duration of the
applicable period of repose.

ARTICLE 8
MATERIALS DEFECTS &
COMPLIANCE WITH LAWS

8.1 In case of any defect(s) on workmanship or materials which becomes apparent in the
course of the construction and which in the OWNER’S reasonable opinion are
unsound or unacceptable, the CONTRACTOR shall, at its own expense, tear down and
replace such portion of the work done and / or materials installed or correct such
defect(s).

8.2 Contractor is not responsible for any job outcomes or charges due to Client provided
materials. This can include but is not limited to changes in layout, color, design, etc.
that result in an unfavorable outcome or additional job charges. The Client accepts
full responsibility for any results or final costs that Client’s materials may produce.

ARTICLE 9
RIGHTS AND RESPONSIBILITIES OF THE OWNERS

9.1 The OWNER may terminate this Contract without incurring any liability whatsoever
to the CONTRACTOR (aside from payments for Works accomplished by giving fifteen
(15) days notice in writing to the CONTRACTOR upon any of the following grounds:

9.2.1 The CONTRACTOR abandons the Project without any just cause or assigns the
execution of the Works or any portion thereof to other parties without the
prior written consent of the Owner.

9.2.2 The CONTRACTOR fails or refuses, without just cause, to continue works on
the PROJECT by reason of any disagreement with the OWNER.

9.2.3 The CONTRACTOR fails to execute the Project in good faith, or in accordance
with the plans and specifications;

9.2 In the event of termination of this CONTRACT by reason of default on the part of the
CONTRACTOR pursuant to the above Sections, the OWNER may take over and
complete the WORKS and/or arrange for any other contractor to do so. The
CONTRACTOR shall then remove its equipment and temporary works from the
PROJECT site within (30) calendar days from its receipt of the notice of termination
or as soon as practicable from receipt of such notice.

Page 8 of 18
9.3 The OWNER shall exercise the right to approve the materials and workmanship of the
CONTRACTOR and require the latter that only materials conforming to the
specifications and equipment complying with the required standards of quality as
detailed in the specifications be used in the Project and reject those which do not
conform thereof or which are defective. Toward this end, the Contractor is obliged to
furnish for approval by the OWNERS samples of materials for examination and
testing.

9.4 The OWNER shall have the right to inspect the work being done by the CONTRACTOR
to ensure that the same is being done properly in accordance with the prescribed
plans and specifications. Work that will be covered before it is done should be first
presented to the OWNER for inspection and work covered without such presentation
and inspection may be ordered uncovered at the CONTRACTOR’S expense. Work
found not to have been done correctly shall be condemned and ordered re-done. If
the inspection would later show that the works was not correctly done, the
CONTRACTOR shall shoulder the cost of removal and reconstruction.

9.5 The OWNER is entitled to be indemnified by the CONTRACTOR for any and all losses,
claims, demands, suits, actions, recoveries and judgment of every nature and
description brought or recovered against the OWNER to the extent that they arise
from the execution of the Works by the CONTRACTOR or by reason of any act or
omission of the CONTRACTOR, its agents or employees.

9.6 The OWNER may suspend or discontinue the execution of the Project by reason of
problems encountered for any justifiable cause. In such a case, the CONTRACTOR
shall be entitled to due compensation for Work accomplished to the satisfaction of
the OWNER up to the time this Contract is rescinded, terminated or cancelled. Upon
payment of the due compensation to the CONTRACTOR, the parties hereto shall be
mutually released of all further obligations under this Contract, which for the
avoidance of doubt, shall include release of the OWNER with regard to any payment
to the CONTRACTOR.

9.7 Should the suspensions subsist for a continuous period of sixty 60 calendar days,
CONTRACTOR may terminate this Contract. In case of termination of this Contract
under this Section, either at the instance of OWNER or CONTRACTOR, OWNER shall
pay CONTRACTOR within thirty (30) calendar days from the effective date of
termination the following:

9.8.1 Amounts due the CONTRACTOR for work accomplished up to the time this
Contract is terminated.

9.8.2 Cost of plant and materials ordered for the Works which have been delivered
to the CONTRACTOR or of which CONTRACTOR is liable to accept delivery
and this plant/materials shall become the property of OWNER when paid for
by OWNER

9.8.3 Any other cost or liability which in the circumstances was reasonably
incurred by CONTRACTOR in the expectation of completing the Works

9.8.4 Demobilization costs.

ARTICLE 10
RIGHTS OF THE CONTRACTOR

10.1 CONTRACTOR shall have the right to suspend work on the PROJECT or terminate this
Contract, by service of a written notice for the purpose, either outright or at any time
after it has suspended the work on the Project for any of the following justifiable
reasons:

Page 9 of 18
 10.1.1 Work on the Project has to be stopped in compliance with the order of
lawful authority, except on instances where the CONTRACTOR failed to
comply with any national or local law, ordinance, rule or regulation in
relation to its execution of the works or which under this Contract is its
obligation to comply;

10.1.2 OWNER assigns this Contract or any of its obligations herein without the
prior written consent of the CONTRACTOR;

10.1.3 OWNER becomes bankrupt or insolvent goes into liquidation, has a

receiving or administration order made against it compounds with
creditors, or carries on business under a receiver, trustee or manager for
the benefit of its creditors, or if any act is done or event occurs which
under the laws has a similar effect to any of these acts or events.

10.2 Upon the resumption of the work after a valid suspension pursuant to the above, the
CONTRACTOR shall be entitled to an extension of the Contract Period and
reimbursement of costs incurred in the adjustment of the period of coverage of the
Bonds and Insurances required under this Contract without prejudice to the
entitlement of CONTRACTOR to be paid any sums due for services rendered prior to
suspension and all the costs incurred by CONTRACTOR during and as a result of the
suspension.

ARTICLE 11
COMPLETION, FINAL ACCEPTANCE AND WARRANTY

11.1 When the Works required and called for under this Contract are substantially
completed (substantial completion means ninety-eight [98%] complete), the
CONTRACTOR shall notify the OWNER in writing through its Construction Manager
and request for a final inspection.

11.2 THE OWNER and the CONTRACTOR shall conduct the joint inspection of the PROJECT
within five (5) calendar days of the request for final inspection, unless the parties
hereto mutually agree on a later date. The parties shall conclude the joint inspection
within thirty (30) calendar days from its commencement unless the parties should
mutually decide to extend the same.

11.3 If the WORKS are found defective, however, the OWNER shall notify the
CONTRACTOR of such defects by issuing an official Punch List. Upon the correction
of the items contained in the Official Punch List, the CONTRACTOR shall again inform
the OWNER of its completion and request for another joint inspection within five (5)
calendar days from receipt of the said notice.

11.4 WARRANTY. The Contractor warrants that in carrying out the services described in
this Contract, Contractor will use the highest degree of workmanship, technical
practices, skills, procedures, care and judgment in accordance with industry
standards as set forth by the, Residential Construction Performance Guidelines,
NAHB. The assignments will be performed in an expeditious and economical manner
consistent with the project’s best interests, and the Contractor will at all times
cooperate with the Client so as to further the project’s best interests.

11.5 The Contractor warrants to provide the Work Product as more fully described in the
OW, Approved Drawings and Change Order(s) to the specifications mutually agreed
upon between the Client and the Contractor.

11.6 The Contractor warrants to providing the project services in a timely fashion. Time is
of the essence. The Contractor is not responsible for project delays caused by Force
Majeure, and/or Client caused delays.

Page 10 of 18
11.7 The Contractor warrants all Work Product(s) for one (1) year from the date of Major
Completion. All manufactured products installed by the Contractor are warranted by
their respective manufactures with no express or implied liability for product
malfunction made by Contactor. Contractor's warranty period does not limit the
manufacturer or supplier warranties

11.5 The Contractor agrees to cure any manufactured product malfunction that occurs
within the product warranty period that is a result of faulty or improper installation
of said product.

11.6 The one (1) year warranty period mentioned is not applicable to any structural or
other construction defects and Oregon Law will apply in such cases.

11.7 This warranty is non-transferable and only exists between the Contractor and the
original Client as signed and dated herein. Furthermore, this warranty covers only
the work performed described in the attached SOW, Approved Drawings, and/or
Change Orders.

ARTICLE 12
DISPUTE SETTLEMENT / ARBITRATION

12.1 Dispute Resolution. In the event of a dispute relating to a Contractor default, the Client
must allow the Contractor fifteen (15) Business days to correct the issue upon
receiving written notice from the Client detailing the default. If Contractor fails to cure
the default within 15 days (or such additional time as may be reasonably necessary
to cure), the Client may elect (in writing) to terminate the Contract. All remaining
balances on Completed Work must be paid in accordance with Section 4.
Payment/Compensation Terms

12.2 Unless Client/Owner otherwise elects litigation, all disputes shall be resolved via
binding arbitration with Arbitration Service of Portland ("ASP"). The parties agree to
use a single arbitrator regardless of the claim amount and agree to conduct discovery
under the Oregon Rules of Civil Procedure, in addition to applicable ASP rules.

12.3 If Contractor wishes to terminate the Contract due to Client’s failure to make timely
payment when due for work performed, the Client shall have 7 days to cure such
failure to pay following Contractor’s written notice specifying such failure.

12.4 This Contract will commence as of the date set forth above and remain in full force
and effect until Full Completion, terminated or otherwise brought to conclusion
through the Dispute Resolution plan set forth in the General Provisions.

ARTICLE 13
MISCELLANEOUS PROVISION

13.1 The CONTRACTOR shall strictly comply with all the laws, ordinances, policies,
guidelines, rules and regulations now existing or hereafter enacted or promulgated
by the Government of the United States, including all its agencies and
instrumentalities, whether National or Local arising from its execution of the Works.
All such applicable laws, ordinances, policies, guidelines, rules and regulations shall
read into and made integral parts of this Contract.

13.2 The failure of any party to this Contract to insist upon a strict performance or
compliance of any of the terms, conditions and covenants hereof shall not be deemed
a relinquishment or waiver of any right or remedy that either party have, or shall it
be construed as a waiver of any subsequent breach of default of terms, conditions or
covenants herein contained. Unless other provided herein, no waiver of any right by

Page 11 of 18
 either party shall be deemed to have been made unless expressed in writing and
signed by both parties.

13.3 The invalidation of any of the terms, conditions, stipulations, covenants, or

restrictions or any part hereof by a final judgment of a court of competent jurisdiction
shall not affect the other provisions hereof. If necessary for the full implementation
of this Contract and the Contract Documents, the parties shall promptly negotiate in
good faith for alternate provisions to replace any provisions which has been declared
invalid by a court of competent jurisdiction.

13.4 Information, documents and other papers relative to this Project obtained or may be
obtained by the Parties shall be kept confidential and shall not be disclosed to any
person or entity without the prior written approval of both the OWNERS and
CONTRACTORS.

13.5 The CONTRACTOR hereby warrants and undertakes that it has complied and will
comply with any and all the relevant labor, laws. Policies, guidelines, rules and
regulations including the mandatory employee benefits coverage and the safety
provision required under relevant occupation hazard laws.

13.6 The terms “day”, “month” and year, shall mean “calendar day”, calendar month” and
“calendar year” respectively, unless otherwise provided in this contract.

13.7 The Contractor guarantees that all plans and specifications are implemented as per
design and responsible on structural integrity implemented per plans for a period of
fifteen (15) calendar years from the completion of the structure.

IN WITNESS WHEREOF, the parties have caused these presents to be signed on the
date and at the place first written above.

(OWNER) (CONTRACTOR)

By: DAWN THORNBURG ROBERT DOLSON

Date:

SIGNED IN THE PRESENCE OF :

1.________________________ 2. _____________________

Page 12 of 18
 NOTICE OF RIGHT TO LIEN
(ORS 87.021)

Warning: Read this notice.

Protect yourself from paying any contractor or supplier
twice for the same service

TO: DAWN THORNBURG DATE:

Owner

ADDRESS: 399 NW Brynwood Lane

3832 West Five Mile Peak Drive
San Tan Valley, AZ 85142

This is to inform you that DOLSON CONSTRUCTION has begun to provide one or more of the
following: Labor, Materials, and Services for the purpose of constructing the preliminary
requirements for THORNBURG RESIDENCES.

Ordered by: DAWN THORNBURG

To property you own. The property is located at: Butterfield Trail, Pinal County, AZ

A lien may be claimed for all materials, equipment, labor, and services furnished after a date
that is eight days, not including Saturdays, Sundays, and holidays, as defined in ORS 187.010,
before this notice was mailed or given to you. Even if you or your mortgage lender has made
full payment to the contractor who ordered these materials or services, your property may
still be subject to a lien unless the supplier providing notice is paid.

THIS IS NOT A LIEN, it is notice sent or given to you for your protection in compliance with
the construction lien laws of the State of Oregon.

This notice has been sent to you by:

Name: DOLSON CONSTRUCTION

44435 W Desert Plant Trail, Maricopa AZ 85139

Phone: (520) 840-2216

(If you have any questions about this notice, feel free to call us.)

(See the next page for more important information)

Page 13 of 18
Page 14 of 18
 A C K N O W L E D G E M E N T

BEFORE ME, this _______________________ day of ________________________ 2022 in _______,

________, personally appeared:

NAME R.C. NO. DATE/PLACE

ISSUED

DAWN THORNBURG
(in his capacity as the Owner)

ROBERT DOLSON
(in his capacity as the Contractor)

Known to me and to be the same persons who executed the foregoing instrument and
they acknowledge to me that same is their free and voluntary act and deed as well as that of
the corporations herein represented.

This instrument refers to a CONSTRUCTION CONTRACT which consist of eighteen

(18) pages including the page where on the acknowledgment is written and which is signed
by the parties and their instrumental witnesses on each and every page there of.

WITNESS MY HAND AND SEAL on the date and at the place first written above.

Doc. No. ________________;

Page No. ________________;
Book No. ________________;
Series of 2022, ____________,

Page 15 of 18